The path of auto making and part manufacturing during the last year had different challenges such as currency rate fluctuation, 80 percent price increment and vehicle import ban which will continue till the end of the year.

Khodrocar – 10th of Tir (1st of June) is the day of
Industry and Mine in Iran. Our industry faced with difficult challenges
during the last year, domestic and foreign challenges which impact it a
lot. Now we will review the past year in the following article.

June 2017 to June 2018

One
of the major challenges during this year was the shutdown of SABTARESH
website which had negative effects on the car’s market. Sudden Shutdown
continued for six months but after that it was announced that 6000 cars
were registered. After all, the reason of this shutdown never reviled.

The
shutdown continued for six months and it was a start for all the
problems of foreign car market. Problems such as price increment, delay
in announcing tariffs, conditions for importing cars with specific
engine displacement, illegal order registration of 6000 cars and finally
car import ban.

Of
course, none of these challenges could grounded the industry singly but
all of them happened in a same time and as a result imported vehicles’
price increased for 50 to 80 percent and the government called it a
price bubble. Market activists blame local and foreign obstacles on the
other hand experts think that lack of supervision is the reason of this
market tension.

Due
to the price increment in the spring, the parliament came to organize
the market but after two and a half months ministry of Industry banded
vehicle importation then they postponed their plan for six months.

Part manufacturers involved in the problems

Part
manufactures were alongside automakers during these problems and now we
are hearing their bankruptcy news. Once they hope to see light days by
participating in foreign contracts then they had difficult days after
cutting the trading exchange and continue the production while part
importation and illegal manufacturers were active in the market and now
near the day of Industry some of them are thinking about closing their
workshops.

Bon Ro faced a dead end

Renault
– IDRO contract planned to be executed in the first days of 1396 but
postponed for 5 months but again Iranian side didn’t fulfill its
promises for giving the Bon Ro site and the contract faced a dead end.
However, there are some whispers that part of this contract will execute
in the current year.

Citroen starts production

The
contract of Saipa Kashan and Citroen processed according to the
schedule and finally the first pile of Citroen C3 produced and presale
but after the announcement of Peugeot for leaving Iran the future of
Citroen is in shadow too. We have to wait and see what will happen in
the first phase of the sanctions.

Volkswagen leaves Iran very soon

Mamout
was planning to sign a contract with Volkswagen as a private sector but
the German automaker didn’t agree to sign contract due to ministry hard
conditions and just let the importation happen. Most experts think that
they will leave Iran certainly.

Iran rise among all world

A
close look at the Iran’s auto industry doesn’t have only bad news and
according to the latest statistics Iran is the 16th country for the rate
of vehicle production.

Sudden increment of local and foreign cars

since
the second week of Farvardin price increment started and foreign cars
got expensive every day and on the other hand domestic cars got
expensive for 5 to 10 percent and the market faced with some difficult
challenges.

Peugeot leaves, Renault stays

After
Trump speech for leaving the JCPOA, Peugeot which is one of the oldest
partners of Iran’s companies announced to leave but Renault said he will
stay in Iran because Iran’s market is potential. Also there are
whispers about the future of the automakers but we have to wait more
till the next month.

As
we said, in the last year Iran’s auto industry faced with a lots of
difficult problems but everyone hoping to see a better day for th future
of this industry.